Buy low, sell high, pass the old investment max. The encrypted world has put a lot of things on its head. So, here's a bit of a twist. Buy high … keep buying higher?
This is a bit ironic, but remember what happened in the world of cryptocurrencies in recent years. After all, the speculation that was a hallmark of digital coins was – and, in some cases, still – based on the idea that if you kept buying (no matter how high the price was), there would always be someone willing to buy higher.
Then the bottom fell. The son-in-space poster, bitcoin, has moved from penny per bitcoin to more than $ 19,000 at its peak, returning to around $ 6,480 today. Many coins have lost 80 percent of their peak and others have made the end of the dodo.
The initial offer of coins (ICO), the historic vehicle to bring new coins to the market, has been a great success and a number of bankruptcies. Consider that just a few months ago the research highlighted in this space (through Boston College) showed that of 4,000 ICOs who collected $ 12 billion collectively, less than half were about four months later. The flame lit and went out.
Arrived on the market in a space full of digital corpses, Oneiro, supported by COSIMO Ventures, declared Thursday, September 13 th that launched ndau ("en-dow"), announced as "the world's first float coin optimized for a long-term value reserve ". The currency is not subdued, which means it is not linked to the fluctuations of any fiat currency, like the dollar. Oneiro said it had sold $ 15 million of ndau through private sale.
Beyond the indeterminate nature of the currency, the company said that there are "incentives and economic controls" integrated into the blockchain ndau that improve the way in which digital currencies and not digital currencies are traded and fluctuated. Again on these "built-in" in a moment, but in a nutshell, the minds and the money that back ndau try to have an important distinction in the realm of cryptocurrency: the creation of a coin that seems to defy gravity and goes in one direction … up.
In an interview with Karen Webster, Ken Lang, one of the first members of the collective ndau and CTO of COSIMO and Jim Kent, CEO of Oneiro took note of the very volatility that marked the criptos, which the two executives say that ndau was designed to circumvent.
In every investment, in any allocation of funds, one must know the reasons why they would do well to put their hard-earned money in that vehicle. Likewise, with any new wrinkles on the cryptic firmament, where hope is "this time, it is different", we must take note of the problem that is solved by the newcomer.
The Problem (Which Problem? Fixed
How Webster Asked: What is the problem that is solved, and why do we need a new currency to solve it?
"Fiat currencies, how the US dollar, "said Lang," are designed with a mandate to be inflationary. "
Every year that there is inflation, those currencies lose a bit of value, he noted. and they work well when the holder wants to buy something in the short term, however, beyond simple transactional usage, Lang has stated that currency holders (or all assets in reality) want to have something that will increase in value over time. Hence, the sincere embrace of cryptocurrencies, such as bitcoin and Ethereum, in which the perception among buyers was / is that they would increase over time.
The fatal flaw, however, was that no control is in place. of volatility Lang has explained that these participations, and even, have been marked by volatility that has been hard for people on a stomach. He said: "Right now there is nothing in the encrypted world that is aimed at a long-term value reserve."
Beyond the general hope that criptos will be adopted more fully by investors and users (to be treated), Lang and Kent said that ndau ideally represents a new type of asset class to which people will join. For example, they could save up to buy something in the future or collect encrypted as a pool of assets that can be managed on behalf of third parties (such as a fund), or they can be used to pay college across the board.
Buoyantly Bouncing Beyond The Floor?
However, to get that hydrostatic thrust after converting the fiat into ndau and ultimately go out with that long-term value (where the bubbles popped up elsewhere), Webster asked how this stablecoin is not only stable , but designed to increase.
The duo explained that the ecosystem is one in which the proceeds of the Ndau sales flows into a budget – hence the name ndau. This amount can be invested in any number of asset classes, but its purpose is to act as a source of liquidity to support the Ndau price.
The endowment works the same way as central banks – complete with market makers who, once ndau is listed, will buy and sell the currency. When price pressures occur, the excess of ndaus is removed from circulation, thus establishing a base price. Basically, Lang said, the base price is calculated based on those assets held by the endowment.
For every 1.000 nda purchased, the price for the new ndaus to be sold goes up a little. There is an exponential curve of higher prices, Kent explained. The proceeds from the sale go to this endowment, which is getting bigger and supports a higher price of the plan
Kent said that comparing it to, say, a money market fund is not a direct read-across, since such funds I am influenced by external market forces. This does not mean that the price will always rise. As Lang noted, if someone sells ndau too quickly, there will be a decline.
"But if there is a good economic mechanism in place, then those reductions will be reduced and so the price will be restored," Lang said. "No one can make this a line that goes straight to the front. We are trying to create a market force and incentives that tend to guide it in that direction. "
Every 1,000 people sold have an incrementally higher price compared to the previous 1,000 lot. To do this (and to counteract a "cut and run" mentality that could mark crypts, at least at present), Lang noted that buyers and sellers usually support a transaction fee in encrypted transactions. The rate linked to ndau is dynamic: the more the market price falls from the target price from which it was sold more recently, the higher the commission. The holders are discouraged from the sale when the price decreases. The idea is to create a series of forces that encourage patients to be patient rather than cut and run, Lang said.
"What happens is that you have created a kind of emerging behavior for the whole group and for the market that is stable, and so you do not see the big races on the bear market," he said. However, there is the possibility of blocking ndau for relatively long periods of time, where such longer-term holders will get 15% additional ndau in the year
The Regulatory Landscape
Inevitably , security questions and regulations have emerged – between violated ICOs and emptied digital portfolios. For security, the two executives have indicated a multi-key strategy that can revoke or replace keys. There are also delays in consumer protection, where, as Lang noted, if something is stolen, a user can send controversial negotiations to the resolution.
Of course, regulation is incumbent. After all, cryptography markets have reached new multi-month lows this week, as a New York judge ruled that a US securities law can be applied to combat fraud in cryptographic space. There seems to be an eternal debate about whether coins are, in fact, titles and should (and will be) regulated as such. Lang responded that while ndau supporters are doing the best they can to follow the regulations, cryptocurrencies should be able to self-regulate.
"You do not want to put this burden on regulators if you can do a great job yourself," Lang said. "In our case, we really focused on digital governance."
Lang and Kent have stated that the ndau operation is overseen by the Blockchain Policy Council (BPC), its members elected by ndau holders.
"We tried to take a look at the non-digital world," Lang told Webster, "and see that," Hey, it's not bad at all. "Cryptocurrencies like the day we'll change everything .. but we are trying to get the best out of both worlds and make people feel more at home who have protections in their cryptocurrency property. "
Sounds like a stretch without a regulator overseeing things, and the promise that where there is a su, there are only taller ones. So, as the encrypted scans new lows, and a lively coin bends: is this time different?